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Mastercard Gets Green Light From EU Regulators for Nets Deal
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Mastercard Inc. (MA - Free Report) has inched closer to seal the acquisition of Nets payment unit by winning the European Union’s (EU) antitrust approval.
However, the EU put a condition that requires transferring the license of Nets’ Realtime 24/7 technology for account-to-account core infrastructure services as well as of the relevant personnel and other assets.
Nets’ account-to-account payment business is a division that offers core infrastructure services for account-to-account payment schemes (A2A CIS).
These services allow payments processing directly from one bank account to another without needing a card. Per the regulatory commission, the transaction was put on hold as it threatened to significantly affect competition in the Nordic or EEA/UK market for the provision of A2A CIS.
Both Mastercard and Nets thus offered to transfer a global license to a suitable purchaser to use Nets' Realtime 24/7 technology with which the target business currently competes in A2A CIS tenders. The purchaser will have access to the licensed technology on an exclusive basis in the EEA (European Economic Area) and on a non-exclusive basis, outside the EEA.
The sale of license satisfies EU’s competition concerns as the new purchaser will be capable enough to compete in the A2A CIS space.
The deal to buy the three divisions of Nets pertaining to instant payments, eBilling and corporate clearing of Denmark-based Nets was announced last year by Mastercard. However, the deal hit a snag after the EU regulators perceived that this buyout might stifle competition in the Nordic region, the U.K. and the EEA.
The addition of Nets technology and teams to Mastercard's portfolio will complement the company’s existing account-to-account capabilities. This $3.2-billion pact is the biggest deal for Matsercard and will expand its reach in the real-time payments solutions.
Moreover, the contract will strengthen Mastercard’s unique position as the one-stop partner of any bank, merchant or government regarding payment needs. The combination of the existing Mastercard assets with the new ones, such as Vocalink, Transfast and Transactis adds to the company’s real-time payment capabilities, innovation and expertise.
Following in Mastercard’s footsteps is Visa Inc. (V - Free Report) , which too provides real-time payments services via its platform Visa Direct.
The global opportunity for real-time payments facility is accelerating. Real-time payment solutions are generally considered to be hassle-free systems in which one individual or a company can irrevocably transfer funds to another's account at another financial institution and receive confirmation for the same, all in a matter of seconds. Demand for faster payments across all market sectors will continue to fuel growth for real-time payment services. This is the next big thing in the payments industry.
According to a Markets and Markets Research report, the global real-time payments market will rise from $6.8 billion in 2018 to $26.9 billion by 2023, seeing a CAGR of 30.9%.
Real time payments in the United States also gained traction after The Federal Reserve’s Faster Payments Task Force established a goal in July 2017 that any consumer or business with a U.S. bank account will be able to securely receive real-time payments by 2020.
Shares of Mastercard have gained 10.6% year to date compared with the industry’s growth of 2.8%.
Matsercard carries a Zacks Rank #3 (Hold), currently. Two better-ranked stocks are Envestnet Inc. (ENV - Free Report) and International Money Express Inc. (IMXI - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present. Envestnet’s earnings surpassed estimates in each of the trailing four quarters, the average being 14.28%. You can see the complete list of today’s Zacks #1 Rank stocks here.
International Money’s bottom line surpassed estimates in three of the last four quarters, (and missed in one) the average beat being 10.82%.
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Mastercard Gets Green Light From EU Regulators for Nets Deal
Mastercard Inc. (MA - Free Report) has inched closer to seal the acquisition of Nets payment unit by winning the European Union’s (EU) antitrust approval.
However, the EU put a condition that requires transferring the license of Nets’ Realtime 24/7 technology for account-to-account core infrastructure services as well as of the relevant personnel and other assets.
Nets’ account-to-account payment business is a division that offers core infrastructure services for account-to-account payment schemes (A2A CIS).
These services allow payments processing directly from one bank account to another without needing a card. Per the regulatory commission, the transaction was put on hold as it threatened to significantly affect competition in the Nordic or EEA/UK market for the provision of A2A CIS.
Both Mastercard and Nets thus offered to transfer a global license to a suitable purchaser to use Nets' Realtime 24/7 technology with which the target business currently competes in A2A CIS tenders. The purchaser will have access to the licensed technology on an exclusive basis in the EEA (European Economic Area) and on a non-exclusive basis, outside the EEA.
The sale of license satisfies EU’s competition concerns as the new purchaser will be capable enough to compete in the A2A CIS space.
The deal to buy the three divisions of Nets pertaining to instant payments, eBilling and corporate clearing of Denmark-based Nets was announced last year by Mastercard. However, the deal hit a snag after the EU regulators perceived that this buyout might stifle competition in the Nordic region, the U.K. and the EEA.
The addition of Nets technology and teams to Mastercard's portfolio will complement the company’s existing account-to-account capabilities. This $3.2-billion pact is the biggest deal for Matsercard and will expand its reach in the real-time payments solutions.
Moreover, the contract will strengthen Mastercard’s unique position as the one-stop partner of any bank, merchant or government regarding payment needs. The combination of the existing Mastercard assets with the new ones, such as Vocalink, Transfast and Transactis adds to the company’s real-time payment capabilities, innovation and expertise.
Following in Mastercard’s footsteps is Visa Inc. (V - Free Report) , which too provides real-time payments services via its platform Visa Direct.
The global opportunity for real-time payments facility is accelerating. Real-time payment solutions are generally considered to be hassle-free systems in which one individual or a company can irrevocably transfer funds to another's account at another financial institution and receive confirmation for the same, all in a matter of seconds. Demand for faster payments across all market sectors will continue to fuel growth for real-time payment services. This is the next big thing in the payments industry.
According to a Markets and Markets Research report, the global real-time payments market will rise from $6.8 billion in 2018 to $26.9 billion by 2023, seeing a CAGR of 30.9%.
Real time payments in the United States also gained traction after The Federal Reserve’s Faster Payments Task Force established a goal in July 2017 that any consumer or business with a U.S. bank account will be able to securely receive real-time payments by 2020.
Shares of Mastercard have gained 10.6% year to date compared with the industry’s growth of 2.8%.
Matsercard carries a Zacks Rank #3 (Hold), currently. Two better-ranked stocks are Envestnet Inc. (ENV - Free Report) and International Money Express Inc. (IMXI - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present. Envestnet’s earnings surpassed estimates in each of the trailing four quarters, the average being 14.28%. You can see the complete list of today’s Zacks #1 Rank stocks here.
International Money’s bottom line surpassed estimates in three of the last four quarters, (and missed in one) the average beat being 10.82%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look..
See the pot trades we're targeting>>